Cummins (NYSE:CMI) Shares Gap Down After Earnings Miss

Posted by Geri Gentry on Aug 4th, 2026

Cummins Inc. (NYSE:CMI – Get Free Report)’s share price gapped down prior to trading on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $648.85, but opened at $578.90. Cummins shares last traded at $610.91, with a volume of 412,511 shares trading hands.

The company reported $6.73 EPS for the quarter, missing analysts’ consensus estimates of $7.21 by ($0.48). Cummins had a return on equity of 25.25% and a net margin of 7.89%.The business had revenue of $9.46 billion during the quarter, compared to analysts’ expectations of $9.33 billion. During the same period in the previous year, the business earned $6.43 earnings per share. The business’s quarterly revenue was up 9.4% on a year-over-year basis.

Cummins Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 3rd. Investors of record on Friday, August 21st will be given a $2.20 dividend. This is an increase from Cummins’s previous quarterly dividend of $2.00. This represents a $8.80 annualized dividend and a yield of 1.4%. The ex-dividend date is Friday, August 21st. Cummins’s dividend payout ratio (DPR) is 41.52%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on CMI shares. Evercore restated an “outperform” rating and set a $845.00 price objective on shares of Cummins in a research report on Monday, May 11th. Truist Financial lifted their target price on Cummins from $815.00 to $901.00 and gave the stock a “buy” rating in a report on Thursday, July 2nd. Weiss Ratings lowered Cummins from a “buy (b)” rating to a “buy (b-)” rating in a report on Wednesday, May 6th. Raymond James Financial lifted their price objective on shares of Cummins from $675.00 to $745.00 and gave the company an “outperform” rating in a report on Tuesday, May 26th. Finally, Barclays increased their price target on Cummins from $610.00 to $760.00 and gave the stock an “overweight” rating in a research report on Wednesday, May 6th. Eleven analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $740.07.

View Our Latest Analysis on CMI

Insider Buying and Selling at Cummins

In other news, VP Donald G. Jackson sold 730 shares of the company’s stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $710.92, for a total transaction of $518,971.60. Following the transaction, the vice president owned 8,316 shares in the company, valued at $5,912,010.72. This represents a 8.07% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, EVP Bonnie J. Fetch sold 652 shares of the stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $700.19, for a total transaction of $456,523.88. Following the completion of the transaction, the executive vice president directly owned 11,679 shares of the company’s stock, valued at $8,177,519.01. The trade was a 5.29% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 13,579 shares of company stock valued at $9,377,684. Insiders own 0.30% of the company’s stock.

Institutional Investors Weigh In On Cummins

Institutional investors and hedge funds have recently made changes to their positions in the stock. Juno Financial Group LLC acquired a new stake in Cummins during the 4th quarter worth about $883,000. Truist Financial Corp increased its holdings in shares of Cummins by 4.8% in the fourth quarter. Truist Financial Corp now owns 64,005 shares of the company’s stock valued at $32,671,000 after purchasing an additional 2,951 shares during the period. Smith Salley Wealth Management raised its stake in shares of Cummins by 1,381.8% in the fourth quarter. Smith Salley Wealth Management now owns 21,768 shares of the company’s stock worth $11,111,000 after purchasing an additional 20,299 shares during the last quarter. Westfield Capital Management Co. LP purchased a new position in shares of Cummins in the fourth quarter worth about $7,797,000. Finally, Kepler Cheuvreux Suisse SA acquired a new stake in shares of Cummins during the fourth quarter worth about $7,869,000. 83.46% of the stock is currently owned by institutional investors and hedge funds.

Cummins Trading Down 6.1%

The stock has a 50-day moving average of $670.29 and a 200 day moving average of $623.53. The company has a quick ratio of 1.11, a current ratio of 1.71 and a debt-to-equity ratio of 0.50. The stock has a market cap of $84.09 billion, a PE ratio of 31.63, a price-to-earnings-growth ratio of 1.55 and a beta of 1.24.

About Cummins

(Get Free Report)

Cummins Inc (NYSE: CMI) is a global power technology company that designs, manufactures, distributes and services a broad portfolio of diesel and natural gas engines, electrified powertrains, power generation systems and related components. Founded in 1919 and headquartered in Columbus, Indiana, Cummins has grown into one of the world’s leading suppliers of internal combustion engines and a provider of technologies that reduce emissions and improve fuel efficiency.

The company’s product lineup includes heavy-, medium- and light-duty engines for on-highway and off-highway applications, generator sets and power systems for commercial and industrial use, and key engine components such as turbochargers, fuel systems, air handling, filtration and aftertreatment solutions.

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